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Voluntary & Statutory Efforts on Prevention & Settlement of Industrial Disputes By: Aayushi Khanna Amaneet singh Brar Ashita Negi Awantika Jain Deepak Goyal

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Page 1: Voluntary & Statutory Efforts on Prevention & Settlement

Voluntary & Statutory Efforts on Prevention & Settlement of Industrial

Disputes

By: Aayushi KhannaAmaneet singh BrarAshita NegiAwantika JainDeepak Goyal

Page 2: Voluntary & Statutory Efforts on Prevention & Settlement

Industrial Dispute

Page 3: Voluntary & Statutory Efforts on Prevention & Settlement

Introduction to Industrial Disputes

• Industrial disputes are organised protests against existing terms of employment or conditions of work.

• According to the Industrial Dispute Act, 1947, an Industrial dispute means:• “Any dispute or difference between employer and

employer or between employer and workmen or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person”

Page 4: Voluntary & Statutory Efforts on Prevention & Settlement

Who can raise an Industrial Dispute?

• Any person who is a workman employed in an industry can raise an industrial dispute. 

• A workman includes any person (including an apprentice) employed in an industry to do manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward.

•  It excludes those employed in managerial or administrative capacity. 

• Industry means any business, trade, undertaking, manufacture and includes any service, employment, handicraft, or industrial occupation

Page 5: Voluntary & Statutory Efforts on Prevention & Settlement

How to raise an Industrial Dispute?

• A workman can raise a dispute directly before a Conciliation Officer in the case of discharge, dismissal, retrenchment or any form of termination of service.  In all other cases, the dispute has to be raised by a Union / Management.

Page 6: Voluntary & Statutory Efforts on Prevention & Settlement

Methods Of Settling Industrial Disputes Without State Intervention

1.Collective Bargaining

2. Voluntary Conciliation & Mediation

3.Voluntary Arbitration

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Collective Bargaining• Collective bargaining is a type of negotiation used by

employees to work with their employers.• During a collective bargaining period, worker’s representatives

approach the employer and attempt to negotiate a contract which both sides can agree with

• Typical issues covered in a labor contract are hours, wages, benefits, working conditions and the rules of workplace

• Once both sides have reached a contract that they find agreeable, it is signed and kept in place for a set period of time,most commonly three years.

• The final contract is called a collective bargaining agreement to reflect the fact that it is a result of a collective bargaining effort.

• The parties often refer to the result of negotiation as collective bargaining agreement(CBA).

Page 8: Voluntary & Statutory Efforts on Prevention & Settlement

Steps For Collective Bargaining

a) Presentation in a collective manner to the employer demands and grievances by the employees.b) Discussions & negotiations on the basis of mutual give and take for settling the grievances and fulfilling their demands.c) Signing of a formal agreement or an informal understanding when negotiations result in mutual satisfaction.d) In the event of the failure of negotiations, a likely resort to strike or lock-out to force recalcitrant party to come to terms.

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• When collective negotiations reach a deadlock, the parties themselves may call in third persons to help them settle their disputes.

• The role of this third person is to break the deadlock, to interpret the view point of one to the other and thereby to help the parties arrive at an agreement.

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Conciliation and Mediation• It is a process by which representatives

of workers and employers are brought together before a third person or a group of persons with a view to persuading them to arrive at an agreement by mutual discussion between them.

• The only difference between conciliator and mediator is that conciliator is more active and more intervening than the mediator who is said to perform a “go messenger” service.

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Voluntary conciliation and mediation

• The state sets up a conciliation and mediation machinery, consisting of personnel trained in the art of conciliating disputes.

• The aim of the conciliator is to break the deadlock, if any, explain the stand and the view-points of one party to the other, convey messages and generally keep the negotiation going.

• Parties are free to accept or reject them.

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Voluntary Arbitration• It refers to getting the disputes settled through an

independent person chosen by the parties involved mutually and voluntarily.

• Arbitration offers an opportunity for a solution of the dispute through an arbitrator jointly appointed by the parties.

• It is commonly viewed as less expensive and faster than resolving a dispute in court.

• An arbitrator may be a single person or a panel.

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• At the time of submitting a dispute to arbitration,t he parties may agree in advance ,to abide by the award of the arbitrator and thus industrial peace is maintained and the dispute is resolved.

• Sometimes, however the parties may agree to submit the dispute to an arbitrator but at the same time, reserve their right to accept or reject the award when it comes.

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Factors Hampering The Adoption Of Voluntary

Arbitration• Easy availability of adjudication in case of failure negotiations.• Dearth of suitable arbitrators who command the confidence of

both the parties.• Absence of recognized union which could bind the workers to

common agreements• Legal Obstacles• The fact that in law no appeal was competent against an

arbitrator’s award• Absence of a simplified procedure to be followed in voluntary

arbitration• Cost to the parties, particularly workers.

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Methods Of Settling Industrial Disputes With State

Intervention

i) Compulsory Establishment Of Bipartite Committees

ii) Establishment Of Compulsory Collective Bargaining

iii) Compulsory Conciliation And Mediationiv) Compulsory Arbitration or Adjudication.

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Compulsory Establishment Of Bipartite Committees

• The state has passed enactments requiring the establishment of bipartite committees consisting of the representatives of workers and their employer at the plant or industrial level.

• These bipartite committees are given the power to settle differences between the workers and the employers as soon as they appear, and thereby they prevent them from growing into big conflagrations.

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• The primary idea behind establishment of such bipartite committees are:-

a) Giving encouragement to the parties concerned to settle and compose their differences by themselves in order to avoid the direct intervention of a third agency

b) Facilitating the composition of differences at their embryonic stages without causing work-stoppages.

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Establishment Of Compulsory Collective Bargaining

• The idea behind such a policy is to force the parties to seek to settle their differences through mutual negotiations and discussions before they decide to resort to strikes or lock-outs.

• Where the parties themselves have set up a machinery for collective bargaining and negotiation, the imposition of collective bargaining by the state becomes unnecessary

• But, if either or both the parties resist the establishment of collective bargaining and the state feels that collective bargaining helps the peaceful and democratic conduct of industrial relations, it may impose collective bargaining compulsory.

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Compulsory conciliation and mediation

• In many countries state goes a step further after creation of conciliation service, it imposes an obligation on the parties to submit their dispute to the conciliation service and makes it a duty of the of the latter to seek to conciliate the dispute.

• The state requires the parties to refrain from causing any work-stoppage, so long as the conciliation proceeding is going on.

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• There are three main considerations for prohibiting the parties from causing work-stoppage and imposing time limit. They are:

1. Conciliation provides a cooling off period2. Freedom of the parties to settle their disputes even by

causing work stoppage, should not be taken away from them for long period.

3. If conciliation does not achieve an early break-through, it is not very likely to succeed later.

If, at the end of the conciliation proceeding, the parties fail to settle their dispute, they are free to go on a strike or declare a lock-out.

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Compulsory Arbitration or Adjudication

• The government under some conditions may decide to refer the dispute to adjudication and force the parties to abide by the award of the adjudicator and at the same time, prohibit the parties from causing work-stoppages.

• There are two principal forms of compulsory arbitration are:1. Compulsory reference but voluntary acceptance of the

award.2. Compulsory reference and compulsory acceptance of the

award.

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Structure of Arbitration Court• It may consist of one person only or a few persons with one

member acting as the chairman.• Usually the adjudicators are drawn from the judiciary.• The qualifications and tenure of office, powers and functions

of the adjudicators are, in general, prescribed under the law itself.

• Sometimes, representatives of employers and employees are also associated with the deliberations of the Court.

• The Power of the Courts depend mostly on the objective for which they are set up.

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Supreme Court of India

Decided on 5th March 2008

Sita Ram and othersv.Moti Lal Nehru Farmers Training Institute

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Focus:• Burden of proof is on the workman to establish that he

had worked for 240 days in 12 calendar months preceding the date of his termination.

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Case:• Respondent is a research institute. It imparts training to

farmers for facilitating improved agricultural production. It was a charitable institute for the farmers.

• They are also undertaking Poultry Farming, Pisciculture, Cow-shelter, Dairy farming, Bee Farming etc. Daily wagers were appointed for the said purpose.

• Appellants are the daily wagers for bee farming whose services were not taken from 28.12.1996, these wagers claimed to have been working for the institute for a long time, and they therefore raised an industrial dispute.

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Labour Court• The state of U.P. referred it for adjudication before the

presiding officer, Labour court, U.P. Allahabad. Before the court both the parties adduced their evidences. The Labour Court later took into consideration the fact that the respondents despite having been called upon to produce relevant records failed to do so, and therefore drew an adverse inference against it. It was therefore held that termination was bad in law, therefore reinstatement was ordered with 25% back wages.

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High Court• The respondents filed a writ with the High Court, by reason of

impugned judgement. The high court set aside the award of labour court opining that the burden of proof had wrongly been placed on the respondent, and that the judgement was based on inferences and guesses.

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Supreme Court• Notice by the Supreme Court the appellants cannot be re-

instated in service as the respondent institute have stopped bee farming, therefore payment of adequate amount of compensation in place of reinstatement sub serves the ends of justice. It was decided that Rs. 1,00,000 to each of the appellants will help meet the ends of justice.

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Compulsory Arbitration VS Collective Bargaining

Arguments for Compulsory Arbitration

Relating to its principles

Relating to prevailing in Indian conditions

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Arguments for Compulsory Arbitration: Relating to its

principle• Collective Bargaining

• Settle disputes on principle of trial of combat.

• Not cause but relative strength of party that ultimately triumphs.

• Strong union with weak case can easily win and vice versa.

• Principle of MIGHT IS RIGHT.

• Rooted in coercive power of parties themselves.

• Compulsory Arbitration• Introduces an element of

law and justice.• Based upon coercive

power of state.• Prevents strong groups

and organizations from holding the community to ransom.

• Help community by imposing terms & conditions which is fair & which keeps cost of production & price within reasonable limits.

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Arguments for Compulsory Arbitration: Relating to India

• Free Collective Bargaining• Freedom to resort to strikes and lock outs• Endangers industrial peace.

• Compulsory Arbitration supplements Collective bargaining.• Parties free to settle dispute peacefully & if fails then

compulsory arbitration came into play.• Helped workers in many poorly organized sectors in

securing significant gains.

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Arguments against Compulsory Arbitration: Relating to its principle

• Compulsory arbitration leads to• Authoritarian imposition of terms & conditions of

employment• Suppresses the possible self governance in industries.

• Parties should be free to sort out their problems by mutual discussions & negotiations

• Solution imposed from outside never provide a lasting solution.

• Absence of standards to resolve and to judge fairness of conflicting claims.

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• Adjudication Award is highly subjective• Psychological bent, mental make up & prejudices of

adjudicator that finally decide the outcome of adjudication proceeding.

• Inability to ensure industrial peace• No award can be enforced when masses of workers

are dissatisfied with it.• Vitiate industrial relations by creating litigious

atmosphere.• Creates artificial atmosphere because both the parties

try to evade the real issues as long as possible.• Lays excessive stress on legalism but it doesn’t solve

the problem

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Arguments against Compulsory Arbitration:

Relating to India• Involves long delay and heavy expenditure.• Employers succeed in carrying cases up to the Supreme

Court of India• Depends upon the reference of dispute to the adjudication

authorities by appropriate govt• Hindered growth of genuine and effective trade union

movement• For fulfillment of demands, workers & their leaders look up

to courts rather than their own strength.

Page 35: Voluntary & Statutory Efforts on Prevention & Settlement

Case: Nityananda Panigrahi vs : General Manager (Mines) Tata Iron

Petitioner• Illegally Terminated on

20.5.1992• Several Frivolous

allegations charged.• Illegal Enquiry without

following principles of natural justice

• No opportunity to defend.

Respondent• Charges properly framed• Domestic enquiry

conducted in consonance with Standing Order & Rules of Management

• Enough opportunity given to defend

• Principles of natural justice followed

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• According to Clause 25 of Memorandum of Settlement & Clause XXXVIII of Memorandum of Agreement, workman should prefer an appeal before Arbitration Committee which is not done in this case.

• So, Dispute can’t be referred to Tribunal under Section 10-A of Industrial Dispute Act.

• Mr. Das submitted that • Tribunal lacked initial Jurisdiction & could not go into

validity of said reference.• Memorandum of Settlement was binding on workman

but not Memorandum of Agreement. So tribunal acted illegally & with material irregularity in holding that no reference could be made under Section 10-A of I.D. Act

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Verdict• Tribunal cannot go into the question of validity of a reference

& reference made to tribunal was not in consonance with law.• Court find no reason to interfere with impugned award.• The petitioner an appeal before Arbitration Committee within

eight weeks hence, the committee shall dispose of the said appeal in consonance with law expeditiously, preferably within four months thereof.

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Legal Framework of IR

Various Machineries to Tackle Industrial Disputes

Statutory Machinery Non- Statutory Machinery

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Prevention & Settlement of Industrial Disputes in India

• A machinery for prevention of ID should be termed a machinery for prevention of strikes & lock-outs.

• Basic elements of state industrial policy flow from i. Leaving the parties free to settle their difference sin

a way they like best, but without causing work-stoppages, that is, CB without the right to strike and declare a lock-out;

ii. Assisting the parties by the provision of conciliation services, to arrive at a peaceful settlement.

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iii. In case the parties still fail to settle their disputes in a peaceful manner, imposing on them adjudication, if state deems it fit;

iv. Imposing certain restrictions on the right to strike and declare a lock-out, in case of some industries of public importance and under certain conditions in all industries;

v. Establishing a number of non-statutory bodies for the purpose of working out the guiding principles of the relations between the employers and the employees, and recommending actions so as to prevent industrial disputes from arising.

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Statutory Machinery

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Statutory MachineryStatutory Machinery consists of:

1. Works Committee, 2. Permanent conciliation services for particular

geographical areas or industries both at the central and state levels,

3. Ad hoc Board of Conciliation at the central and state levels,

4. Ad hoc Courts of Inquiry at the central and state level,

5. Adjudication authorities consisting of Tribunals and Labor Courts at the central and state levels,

6. National Tribunals at the central level.7. Arbitration8. Grievance Handling Procedure

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1. Works Committee

• Constituted where 100 & more workers are employed in an industrial establishment

• Govt. may require the employer to set up work committee• Composed of equal number of representative of workers

and management • At max 20 representatives• To preserve amity and establish cordial relations • Is purely consultative body • Deals with day to day functioning- leaves, holidays, wages,

working hours …

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2. Conciliation Officer

• Appointed for specific area or specified industries• Mediate in and promote the settlement of industrial

disputes• Where industrial disputes exists or is apprehended -

conciliation officer shall hold conciliation proceedings • He cannot take decision - send report of settlement to

his government • Duty of the conciliation officer is administrative and not

judicial in nature• If the agreement is reached by the parties, it is binding

on both the parties.

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• Submission of report in 14 days• Submission in both circumstances ,

• Able to arrive at a settlement• Not able to arrive at a settlement(with reasons)

• Govt. can nominate any no. of Conciliation Officers for permanent or temporary basis.

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3. Board of Conciliation • Govt. may notify constitution of

board of conciliation • for promoting settlement of

an industrial dispute • Its role is also consultative. • Consist 2 or 4 other members

plus chairman• Chairman – an independent

person (should not have any interest in either of the parties)

• BOC submits report within 2 months

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4. Court of Enquiry

• Govt. may constitute a court of enquiry

• Consists of 2 or 4 members (including chairman)

• Object is to enquire into and reveal the causes of an industrial dispute.

• Submission of report within 6 months

• Can be permanent/temporary

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5. Adjudication• The ID Act provides three tier system of adjudication of

industrial dispute. • Cases either may be referred by government to court after

the receipt of failure report form conciliation officer or directly by any party.

• a. Labor Courts : Legality of order, Application and interpretation , Discharge and dismissal of workman, Withdrawal of any customary , Illegality or otherwise of a strike or lock out.

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• b) Industrial Tribunals • All matters within jurisdiction of labour courts,• wages,• compensatory and other allowances,• hours of work and rest intervals,• leave with wages and holidays,• bonus, provident fund and gratuity,• working shifts,• classification of grades,• rules of discipline, and• Retrenchment and closure of establishment.

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• c) National Tribunal Constitute when more

than one state is affected by such dispute and matters related to functioning of labor and industrial courts.

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6. Voluntary Arbitration• It is voluntary method of resolving individual disputes • Here both parties are willing to go to an arbitrator and

submit to his decision. • Arbitrators can be one or even more than one.• Decision given by arbitrator is binding• Award is valid for 1 year, can be extended max. up to 3

years but not on continuous basis(renewed on expiry of 1 year) .

• Award is a final interim decision

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Non- Statutory Machinery

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Non-Statutory Bodies• Non statutory bodies exist at different

levels such as the Indian Labour Conference and Standing Labour Committee at the national level, Wage Boards and Industrial Committees at the industry level, and State Labour Advisory Boards at the State Level

• The primary purpose of these organisations is to work out the guiding principles of the relations between employers and employees in order to prevent industrial disputes from arising.

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Indian Labour Conference and Standing Labour Committee

• The ILC and SLC are tripartite in character consisting of representatives of the central and state governments, employers and workers.

• Both of them were set up in 1942, with initial membership of 44 in the ILC and 20 in the SLC.

• Both bodies are expected to ensure equal representation of the employers and workers, and the representatives of the government being equal to those of the employers and workers taken together just like International Labour Conference and the Governing Body of ILO

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• Decisions in these bodies are arrived at on the basis of a consensus arising out of the discussions rather than on formal voting, although a provision exist in the rules of both the ILC and the SLC, for taking decisions by a two-third majority.

• The main objectives underlying their establishment were: promoting uniformity in labour legislation; laying down of a procedure for the settlement of industrial disputes; and discussing all matters of national importance as between employers and employees

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• The scope of the deliberations of both bodies is confined mainly to labour matters in the country.

• The deliberations of these bodies have helped reaching a consensus regarding minimum wage fixation, introduction of health insurance and provident fund schemes, enactment of new labour laws and modification of the existing ones.

• The procedure of settling industrial disputes as envisaged in the Industrial Disputes Act, 1947 is a direct outcome of the deliberations of these bodies.

• The Code of Discipline and the Code of Conduct evolved at the ILC have also played an important role in influencing the pattern of industrial relations

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Code of Discipline in Industry

• The Code of Discipline, as drafted by a tripartite sub-committee appointed by the Indian Labour Conference in 1957 and modified by the Standing Labour Committee was unanimously adopted by the ILC at its 16th session held in May1958. the Code came into force from June 1958

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Working

• The Code of Discipline has come to be accepted not only by the central organisations of employers and workers represented by the Indian Labour Conference, but also by those who are not he members of these organisations.

• The Code is also applicable to public sector undertakings run as companies and corporations except those under the Ministry of Defence, Railways , and Ports

• The Code has also come to be applied to the Department of Defence Production, LIC, SBI and RBI

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• Some of the points of Code of Discipline should be embodied in law as suggested by the first National Commission on Labour. These include:

• Recognition of unions as bargaining agents,• Setting up of an grievance machinery in an undertaking• Prohibition of strike/lock-outs without notice• Penalties for unfair labour practices• Provision for voluntary arbitration

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Industrial Committees• The establishment of Industrial Committees for specific

industries was the outcome of the 1944 session of the Indian Labour Conference.

• There is no rigid constitution in respect or these committees, but the policy of their remaining tripartite in character and equal representation of employers and workers is accepted

• Within the framework of this broad policy, the actual composition is decided afresh each time a meeting is convened

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• The first Industrial Committee was set up in1947 for plantations

• Later, such committees came to be set up for many other industries like, coal mining, cotton textiles, cement, tanneries and leather goods manufactories, mines other than coal, jute , building and construction, chemical industries, iron and steel, road transport , engineering industries, metal trades , electricity, gas and power, and banking

• Meetings of Industrial Committees are ,however, not held regularly; these are convened as and when required

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Wage Boards

• Second Five Year Plan had observed:

• Statistics of industrial disputes show that wages and allied matters are the major source of friction between employer and workers.

• An authority like a tripartite wage board, consisting of equal representatives of employers and workers and an independent chairman will probably ensure more acceptable decisions.

• Such wage boards should be instituted for individual industries in different areas

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• The Third Five Year Plan also encouraged Wage Board

• The first non-statutory Wage Board was set up for the cotton textile industry in1957. Subsequently, Wage Boards were set up for other industries too.

• A Wage Board generally consists of an impartial Chairman, two other independent members, and two or three representatives of employers and workers each.

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• The Boards were purely recommendatory bodies and dissolved after they had submitted their recommendations

• The most important function performed by a Wage Board had been to determine the wage structure for the industry concerned and to specify the categories of employees to be brought under the purview of the wage fixation.

• In some cases, they were also asked to deal with such questions as gratuity, hours of work and bonus.

• Now, the Wage Board system has fallen in disuse.

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Board of Arbitration for Central Government Employees

• In 1966, the Government of India introduced a scheme for the Joint Consultative Machinery and Compulsory Arbitration for resolving differences between the government as an employer and the general body of its employees

• The scheme provides for compulsory arbitration of pay and allowances, weekly hours of work and leave of a class or grade of employees.

 •The Board of Arbitration functions under the administrative control of the Ministry of Labour.

• Its awards are binding on both sides and can be modified or rejected only by the Parliament.

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Other Tripartite Bodies at the Central Level

Notable tripartite bodies which have been functioning at the central level are:

• Central Implementation and Evaluation Committee

• Central Board of Workers’ Education

• National Productivity Council

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State Labour Advisory Boards

• State Labour Advisory Boards on the pattern of the Indian Labour Conference have also been set up in almost all the states in the country.

• These Boards provide a forum of the representatives of government, employers and employees to discuss problems so as to maintain and promote harmonious industrial relations and to increase production.

• They advise the state governments on all matters relating to labour.

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Other Tripartite Bodies at the State Level• Amongst the important tripartite committees functioning

in the states are:

• Implementation and Evaluation Committees

• Committees for particular industries

• Labour Welfare Boards or Committees

• Some of these are permanent, while others are constituted as and when required.

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National Commission On Labour • The first National Labour Commission was established

on 24th December, 1969 under the Chairmanship of Dr. Gajendra Gadkar. The objective was to study and review the living conditions of labour and the labour legislations since 1947.

• In pursuance of this legacy which involves industrial relations and economy, the Second National Labour Commission was brought into existence after a long gap of 33 years based on the recommendation of Indian labour Conference held in September, 1992. It consisted of ten members.

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• While developing the framework for its recommendation, the Commission took into account, the emerging economic environment involving rapid technological change, globalisation of economy, liberalisation of trade and industry, need for bringing existing laws in tune with future labour market needs and demands.

• The Commission recommended new labour laws on labour management relation, wages, occupational safety and health, small enterprise, hours of work, leave and other working condition of work place, child labour and unorganised sector etc.

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IN THE HIGH COURT OF ALLAHABAD• Decided on: 23.09.2005

• Appellants: Regional Manager, Bank of India Vs,• Respondent: Presiding Officer, Central Government

Industrial Tribunal-cum-Labour Court & Shri Churamani Singh

• Acts/Rules/Orders: Industrial Dispute Act- Section 10

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Substance of the Charge• Respondent workman employed as a Special Assistant

in the petitioner’s Bank (Public Sector Bank)• Workman had managed to get a cheque book issued on

3.8.1987 for a saving account in the name of K.K.Jaiswal on the basis of a forged requisition slip

• Managed to withdraw Rs. 9,000 & Rs. 17,000 from the said account on 6.8.1987 after forging the customer’s signature

• In spite of complaint, no action was taken against him

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Case Analysis• Staff officer in Zonal office appointed enquiry officer• After furnishing a copy of the report to the workman a

show cause notice was issued seeking his explanation & after hearing him an order of termination dated 14.3.1991 was passed

• Workman preferred departmental appeal: dismissed (9.7.1991)

• Workman approached the Conciliation Officer : Central Govt. referred the dispute u/s 10 of ID Act to the IT (26.3.1993)

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What the Tribunal held …• Tribunal held that the enquiry was vitiated & refused to

grant opportunity to the petitioner bank to prove the charge on the ground that it would be futile & by the impugned award it exonerated the respondent workman.

• Tribunal passed the above order in spite of the management making an application to allow it to lead evidence to prove charge if enquiry was found vitiated (30.5.1996)

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Arguments against the Tribunal’s Decision

• Was the Tribunal justified in refusing to grant opportunity to the petitioner bank to prove the charges before it?

• As per previously decided cases,• Held in Firestone Tyre & Rubber Company of India

Private Ltd Vs. The Management & Ors. : Once an enquiry has been held to be improper or unjust, it would tantamount to no enquiry at all & the employer would be well within his rights to seek an opportunity to the petitioner to prove the charges before the tribunal

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• Held in The Cooper Engineering Ltd Vs. P.P.Mundhi: Once the Tribunal had recorded a finding that the enquiry was vitiated, it was bound to grant opportunity to the petitioner to prove the misconduct before the tribunal itself for which the application had already been made on his behalf

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Arguments of the Petitioner’s Counsel• Learned counsel urged that the tribunal had illegally

discarded the evidence of the customer K.K.Jaiswal by holding that his evidence is of a general nature

• Shri Jaiswal had stated before the enquiry officer that the workman had contacted him in his village & had asked him to withdraw his complaint ensuring him that he would make good the loss suffered by him & if need be he will also mortgage his residential house in favour of Shri Jaiswal

• Tribunal treated this as extra judicial & refused to believe him

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• Firstly, principle of extra judicial is confined to criminal law & not to domestic enquiry

• Secondly, this admission of the workman before Mr . Jaiswal cannot be termed as extra judicial confession, in fact the workman was seeking to save himself & was apologizing before Jaiswal

• Hence reasons given by tribunal for discarding Mr. Jaiswal’s statement are unacceptable

• Also Shri Babu Dal Daftri had stated that the workman had given him the requisition slip for the cheque book while Shri Hamid had unequivocally stated that he had given the cheque book to the workman though it is normally given to the counter clerk because the workman claimed that Shri Jaiswal was his acquaintance

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• The Tribunal refused to believe their statements solely on the ground that though the cheque book ought to have been given to the counter clerk why Shri Hamid had given it to the workman.

• This shows that, there was clinching evidence against the workman together with the attending circumstance that immediately after withdrawing the amount the workman availed his L.F.C. and had gone on a pleasure trip

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Judgement• The court held that , the Enquiry Officer was justified in

terminating the service and the Tribunal without taking a holistic view has applied technical arguments to overcome findings of fact recorded on the basis of evidence by the Enquiry Officer

• For the reasons given above, this petition succeeded and was allowed and the impugned award dated 3.5.1997 was quashed

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